What is the state of AI integration in a safety-critical world such as the aviation industry? Our recent survey takes a look at how far the industry has come in utilising generative Artificial Intelligence (AI).
The aviation industry faces increasing pressure to improve the sustainability of air travel and operational efficiency in a recovering and increasingly complex market space. In an industry where safety is paramount and new technologies require utmost scrutiny, generative Artificial Intelligence (AI) has the potential to help aviation companies and operators lower their operating costs and overheads.
This survey looked at how the aviation industry is planning on using Artificial Intelligence (AI) within their organisations. Respondents were from a range of airlines, big and small. The majority of respondents believe that it will have a key role to play within their operations, with revenue management, finance and operations being the most popular areas for its deployment. Just over half have already started along their AI journey.
Despite all the hype about the potential rewards, our survey shows that discussion around AI is not fully on the agenda, either of C-Suite meetings or board members and if the rewards are not being discussed then it follows that the risks aren’t either.
Our data shows that almost half of the respondents in the industry believe that AI will degrade authenticity in communications for customers and suppliers alike.
Leaders in many industries, not just aviation, are struggling with how to leverage AI, it seems that new skills and expertise for both leaders and board members, will go a long way to determining whether it is a success.
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The state of AI integration in a safety-critical world
About this survey
Alumni has surveyed C-Suite leadership in the Aviation Industry to ascertain the commitment and current status of AI within the sector. Whilst the response level was relatively small, the results paint a picture of the opportunities and risks associated with AI that have to be addressed.
The senior leaders we questioned comprised of:
Using AI for predictive maintenance can help identify potential aircraft failures before they happen. Maintenance technicians and aircraft manufacturers can improve repair and assembly processes and engineers can streamline the design & certification of products by using AI software. Carriers can also use AI in a number of other ways, for example predicting flight delays, managing fuel and emissions, or optimising prices and revenue generation.
In airports, facial recognition can expedite the processes of check-in, immigration and baggage handling. Machine learning algorithms can automate the process of crew rotas by looking at historical data. AI can make short work of factoring in the number of flights, number of standby crew, holiday schedules, transfers, layovers and rest requirements. The use cases are numerous.
Our survey shows that more than half (56 percent) of respondents are primarily concerned with using AI in revenue management. More than a third see it being applied in network planning.
McKinsey’s Global AI Survey shows that 27 percent of HR respondents said their AI adoption resulted in a cost reduction of less than 10 percent, while 23 percent reported an average revenue increase of 6 percent to 10 percent.
Our survey shows that almost three in ten see AI playing a crucial role in managing the workforce.
Regardless of the wide spectrum of opportunity, just over half (55 percent) of our respondents have implemented AI solutions within their organisations to date.
Numerous use cases
The HR areas involved in this survey were performance management and organisation design, workforce deployment, and talent management optimisation.
In airports, facial recognition can expedite the processes of check-in, immigration and baggage handling.
Machine learning algorithms can automate the process of crew rotas by looking at historical data.
AI can make short work of factoring in the number of flights, number of standby crew, holiday schedules, transfers, layovers and rest requirements.
While time-saving AI tools have sparked a flurry of interest and are presenting business leaders value, defining the key stakeholder seems far from uniform. Some airlines are already considering the creation of a new C-Suite role (CAIO), to oversee AI operations, integration, and controls at the enterprise level. Where exactly this crosses over with roles currently entrusted with AI, however, such as chief information officers (CIOs), will depend on the demands of different organisations. It is a safe assumption that a dedicated role for AI might allow businesses to plan their AI strategy more effectively.
Still, AI remains somewhat a wild child running free, not even a third of our respondents have AI on their boardroom agenda and less than half are discussing it in management meetings. What is more surprising is that these figures don’t appear to change much whether implementations have been made or not.
We asked our respondents whether AI risk management and mitigation is being discussed and 72 percent say that it is. Though clearly not in the boardroom or in management meetings.
In recent years, our leadership consultancy has seen a big uptick in digital and AI competencies being sought in non-executives and C-Suite positions across the board. They have responded by expanding their leadership development matrices and broadening networks to include cross-sector candidates.
Re-skilling is essential to improve understanding and acceptance, being able to see AI as an opportunity not a threat.
The ethical use of AI is surely an issue that no airline can avoid, particularly when it comes to facial recognition systems. If ethical AI is not considered a priority across every part of the business, the reputational risks could be significant.
While boardroom executives have recognised the importance of ethical AI to their businesses, implementation is presenting some real challenges.
Almost one in ten of our respondents report a lack of commitment to fairness and inclusivity.
AI is reportedly making great strides in improving customer satisfaction and retention in many industries. However, just over a quarter (27 percent) of our respondents identified it as a department where AI will play a crucial role.
Despite improvements in customer satisfaction and retention , almost half of our respondents think that AI will reduce the authenticity of marketing and communications.
Almost as many (44 percent) believe that AI will decrease authenticity for external suppliers.
Whilst almost all of our C-suite respondents (96 per cent) acknowledge the enhanced profitability and shareholder value that AI offers the aviation industry, there seems to a lot more that needs to happen in order to prepare, let alone see, those rewards.
If you would like to discuss the best ways of bringing AI and digital capabilities into your boardroom or C-suite, then please do get in touch with us at Alumni Global.
Country Manager Alumni Norway
Global Practice Leader Civil Aviation
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